v3.22.4
Property, Plant and Equipment, net and Intangibles, net
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, net and Intangibles, net Property, Plant and Equipment, net and Intangibles, net 
Property, plant and equipment, net consisted of the following as of December 31, 2022 and January 1, 2022: 
 20222021
Mineral bearing land and leased interests$515,153 $535,198 
Land (non-mineral bearing)183,926 196,843 
Buildings and improvements213,056 185,472 
Plants, machinery and equipment1,380,886 1,405,694 
Mobile equipment and barges555,119 560,515 
Truck and auto fleet38,717 54,700 
Landfill airspace and improvements55,027 52,258 
Office equipment49,336 47,389 
Construction in progress90,039 71,352 
Property, plant and equipment3,081,259 3,109,421 
Less accumulated depreciation, depletion and amortization(1,267,557)(1,266,513)
Property, plant and equipment, net$1,813,702 $1,842,908 
 
Depreciation on property, plant and equipment, including assets subject to capital leases, is generally computed on a straight-line basis. Depletion of mineral reserves and leased mineral interests are computed based on the portion of the reserves used during the period compared to the gross estimated value of proven and probable reserves, which is updated periodically as circumstances dictate. Leasehold improvements are amortized on a straight-line basis over the lesser of the asset’s useful life or the remaining lease term. The estimated useful lives are generally as follows:
   
Buildings and improvements
10 - 30
years
Plant, machinery and equipment
7 - 20
years
Office equipment
3 - 7
years
Truck and auto fleet
5 - 8
years
Mobile equipment and barges
6 - 8
years
Landfill airspace and improvements
10 - 30
years
Other
4 - 20
years
 
Depreciation, depletion and amortization expense of property, plant and equipment was $184.3 million, $195.1 million and $195.3 million in the years ended December 31, 2022, January 1, 2022 and January 2, 2021, respectively.
 
Property, plant and equipment at December 31, 2022 and January 1, 2022 included $32.1 million and $69.0 million, respectively, of finance leases for certain equipment and a building with accumulated amortization of $15.0 million and $31.4 million, respectively. The equipment leases generally have terms of less than five years and the building lease had an original term of 30 years. Approximately $7.0 million and $17.6 million of the future obligations associated with the finance leases are included in accrued expenses as of December 31, 2022 and January 1, 2022, respectively, and the present value of the remaining finance lease payments, $7.2 million and $15.0 million, respectively, is included in other noncurrent liabilities on the consolidated balance sheets. Future minimum rental commitments under long-term finance leases are $7.4 million, $2.8 million, $2.4 million, $1.0 million, and $0.8 million for the years ended 2023, 2024, 2025, 2026 and 2027, respectively.
 
Assets are assessed for impairment charges when identified for disposition. No material impairment charges have been recognized on assets held for use in fiscal 2022, 2021 or 2020.
    
Intangible Assets—The Company’s intangible assets subject to amortization are primarily composed of operating permits, mineral lease agreements and reserve rights. Operating permits relate to permitting and zoning rights acquired outside of a business combination. The assets related to mineral lease agreements reflect the submarket royalty rates paid under agreements, primarily for extracting aggregates. The values were determined as of the respective acquisition dates by a comparison of market-royalty rates. The reserve rights relate to aggregate reserves to which the Company has the rights of ownership, but does not own the reserves. The intangible assets are amortized on a straight-line basis over the lives of the leases or permits, or computed based on the portion of the reserves used during the period compared to the gross estimated value of proven and probable reserves. The following table shows intangible assets by type and in total: 
 December 31, 2022January 1, 2022
 Gross NetGross Net
 CarryingAccumulatedCarryingCarryingAccumulatedCarrying
 AmountAmortizationAmountAmountAmortizationAmount
Operating permits$38,677 $(4,109)$34,568 $33,671 $(2,467)$31,204 
Mineral leases18,091 (7,056)11,035 19,927 (8,922)11,005 
Reserve rights25,242 (3,872)21,370 25,586 (3,329)22,257 
Other4,877 (466)4,411 5,481 (551)4,930 
Total intangible assets$86,887 $(15,503)$71,384 $84,665 $(15,269)$69,396 
 
Amortization expense in fiscal 2022, 2021 and 2020 was $3.5 million, $3.7 million and $2.7 million, respectively. The estimated amortization expense for intangible assets for each of the next five years and thereafter is as follows:
 
  
2023$4,010 
20243,985 
20253,944 
20263,895 
20273,883 
Thereafter51,667 
Total$71,384 
Summit Materials, LLC  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, net and Intangibles, net Property, Plant and Equipment, net and Intangibles, net
Property, plant and equipment, net consisted of the following as of December 31, 2022 and January 1, 2022:
 
 20222021
Mineral bearing land and leased interests$515,153 $535,198 
Land (non-mineral bearing)183,926 196,843 
Buildings and improvements213,056 185,472 
Plants, machinery and equipment1,380,886 1,405,694 
Mobile equipment and barges555,119 560,515 
Truck and auto fleet38,717 54,700 
Landfill airspace and improvements55,027 52,258 
Office equipment49,336 47,389 
Construction in progress90,039 71,352 
Property, plant and equipment3,081,259 3,109,421 
Less accumulated depreciation, depletion and amortization(1,267,557)(1,266,513)
Property, plant and equipment, net$1,813,702 $1,842,908 
 
Depreciation on property, plant and equipment, including assets subject to capital leases, is generally computed on a straight-line basis. Depletion of mineral reserves and leased mineral interests are computed based on the portion of the reserves used during the period compared to the gross estimated value of proven and probable reserves, which is updated periodically as circumstances dictate. Leasehold improvements are amortized on a straight-line basis over the lesser of the asset’s useful life or the remaining lease term. The estimated useful lives are generally as follows:
 
Buildings and improvements
10 - 30
years
Plant, machinery and equipment
7 - 20
years
Office equipment
3 - 7
years
Truck and auto fleet
5 - 8
years
Mobile equipment and barges
6 - 8
years
Landfill airspace and improvements
10 - 30
years
Other
4 - 20
years

Depreciation, depletion and amortization expense of property, plant and equipment was $184.3 million, $195.1 million and $195.3 million in the years ended December 31, 2022, January 1, 2022 and January 2, 2021, respectively.
 
Property, plant and equipment at December 31, 2022 and January 1, 2022 included $32.1 million and $69.0 million, respectively, of finance leases for certain equipment and a building with accumulated amortization of $15.0 million and $31.4 million, respectively. The equipment leases generally have terms of less than five years and the building lease had an original term of 30 years. Approximately $7.0 million and $17.6 million of the future obligations associated with the finance leases are included in accrued expenses as of December 31, 2022 and January 1, 2022, respectively, and the present value of the remaining finance lease payments, $7.2 million and $15.0 million, respectively, is included in other noncurrent liabilities on the consolidated balance sheets. Future minimum rental commitments under long-term finance leases are $7.4 million, $2.8 million, $2.4 million, $1.0 million, and $0.8 million for the years ended 2023, 2024, 2025, 2026 and 2027, respectively.
 
Assets are assessed for impairment charges when identified for disposition. No material impairment charges have been recognized on assets held for use in fiscal 2022, 2021 or 2020.
 
Intangible Assets—The Company’s intangible assets subject to amortization are primarily composed of operating permits, mineral lease agreements and reserve rights. Operating permits relate to permitting and zoning rights acquired outside of a business combination. The assets related to mineral lease agreements reflect the submarket royalty rates paid under agreements, primarily for extracting aggregates. The values were determined as of the respective acquisition dates by a comparison of market-royalty rates. The reserve rights relate to aggregate reserves to which the Company has the rights of ownership, but does not own the reserves. The intangible assets are amortized on a straight-line basis over the lives of the leases or permits, or computed based on the portion of the reserves used during the period compared to the gross estimated value of proven and probable reserves. The following table shows intangible assets by type and in total:
 
 December 31, 2022January 1, 2022
 Gross NetGross Net
 CarryingAccumulatedCarryingCarryingAccumulatedCarrying
 AmountAmortizationAmountAmountAmortizationAmount
Operating permits$38,677 $(4,109)$34,568 $33,671 $(2,467)$31,204 
Mineral leases18,091 (7,056)11,035 19,927 (8,922)11,005 
Reserve rights25,242 (3,872)21,370 25,586 (3,329)22,257 
Other4,877 (466)4,411 5,481 (551)4,930 
Total intangible assets$86,887 $(15,503)$71,384 $84,665 $(15,269)$69,396 
 
Amortization expense in fiscal 2022, 2021 and 2020 was $3.5 million, $3.7 million and $2.7 million, respectively. The estimated amortization expense for intangible assets for each of the next five years and thereafter is as follows:
 
2023$4,010 
20243,985 
20253,944 
20263,895 
20273,883 
Thereafter51,667 
Total$71,384